Real estate agents have been arguing on the video-sharing platform since Friday that a recent commission lawsuit settlement could hurt homebuyers and the agents who represent them.
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TikTok’s days in the United States may be numbered thanks to hawks in Congress, but that hasn’t stopped numerous real estate agents from taking to the platform to weigh in on the National Association of Realtors’ huge commission lawsuit settlement over the past three days.
The proposed settlement includes a $418 million payment and various policy changes, and like the settlement involving Anywhere, RE/MAX and Keller Williams, it requires court approval before it becomes official. The issue may also drag on because, among other reasons, some cases, such as those brought by homebuyers, are not covered by the settlement.
Still, despite pending lawsuits and unanswered questions, agents have posted a flood of comments, analysis and complaints about the situation on TikTok. While it’s hard to tell what’s trending online across multiple different media bubbles, following the settlement, this reporter’s “For You Page” (TikTok’s main feed) suddenly shifted from a focus on interior design and political news to a flood of posts about the NAR settlement.
Complaints vary. Some agents believe the settlement itself is unlikely to benefit agents or consumers. Others believe the media missed the nuances of the settlement or didn’t understand how the industry historically worked. But overall, the NAR settlement caused great anxiety and disappointment in the U.S. secret service community.
Here’s a small sample of TikTok posts from real estate professionals commenting on the settlement in recent days.
Shopping will be more expensive
One of the most common sentiments in the online agency community is that settlements end up costing buyers more money. Many agents believe this is because buyers have to pay for their own representation, and agents don’t work for free.
Matt Whitley, Clermont, Florida: “The sellers file a lawsuit so they don’t have to pay the buyer’s agent so they can keep more of the money. Instead of passing the savings on to you, they tell you to hire your own agent. So , now you as the buyer will pay the same list price, so the seller gets more equity, and you as the buyer only pay 1% for the door opener you just filled out the contract for. So if you understand these changes , your costs will actually increase by 1%.”
@mjwhomes @tylerthorns #sew #real estate #Change #greenscreen @tylerthorns
Mason Mitchell, Charlotte, North Carolina: “If you think the NAR settlement is going to cause home prices to fall, you’re an idiot.”
@maceon.mccracken This settlement only benefits sellers, leaving homebuyers completely in the lurch in an already overpriced, inflated and competitive market. #NARSettlement #NAR #Real estate broker #ncrealtor #charlotterealtor #real estate
Jennifer Green, Beaumont, Texas: “Buyers don’t pay the real estate agent directly, and the real estate agent doesn’t take pennies on behalf of the buyer. We’re not paying $100 to open the door. I wouldn’t do that.”
@jenngstyle Reply to @timsewellrealtor #Board of Realtors #NARlawsuit #realcake #realtoroftiktok
Buyer’s agent in trouble
While the most common argument online seems to be that the settlement will hurt homebuyers, many agents also believe buyer’s agents themselves will be hit. Arguments range from claims that many agents will not be able to make ends meet to arguments that consumers will gradually begin to choose not to use agents at all to purchase homes.
Ian Phillips, Orange County, California: “I expect buyers’ agents may be getting out of the business more often than they are now.”
@iainrphillips If you think buyers are going to pay their agent 2% or 3% of the purchase price, you’re dreaming #real estate #litigation #buyeragent #Real estate broker #oops #Daydream #dream
Mainstream reports miss the point
Many agents blasted media coverage of the settlement online, with many singling out a CNN article that claimed the “6 percent commission” “has disappeared.” The article struck a peculiarly celebratory tone that characterizes much of the mainstream coverage of reconciliation. But attorneys on social media have disputed some of the points in such reports, arguing — as NAR and others have done in court — that 6 percent commissions are not common and that commissions Partition will still exist in some form.
Emily McAllister, Greenville, North Carolina: “It removes the seller’s ability to advertise a buyer’s agent commission in the MLS, but not the seller’s ability to offer a buyer’s agent commission. This is a pretty big swing considering a few years ago the NAR’s main goal was to be more transparent when it came to commissions. (…) If this has created a situation where real estate agents have more opportunities to do shady things than they did a week ago.”
@realtoremilymcallister Sellers should not be required to provide a buyer’s agent commission.That said… they could have offered $1
Joshua Ma, Atlanta, Georgia: “To be fair, CNN is not the only one using the term “standard 6%.” You may see this in many of the news articles reporting on this settlement. (…) The main idea is that the 6% commission, early on Before the settlement, long before the settlement, the whole 6 percent commission was nothing in quite a few markets.”
@joshuamarealtor News of the NAR settlement has broken out, and predictably, there’s been a lot of misinformation. I will discuss my thoughts on settlement and the future of real estate, but first, I want to clear up some misinformation. I haven’t filled it yet. The idea of the “6% standard” did not appear out of thin air. Maybe there was a time when real estate agents had too much power. This is absolutely not true today. In the years before the NAR settlement, there were many markets, such as Northern California and Vegas, where 6% was unheard of. Very few sellers pay 6% commission. In my metro Atlanta market, some sellers still pay a 6% commission. Others pay 7%, while others pay 2.75% or less. In fact, commissions are negotiable. Commissions are determined by the market, not the NAR or the real estate agent. While I don’t like this settlement by any means, I think it will ultimately be good for consumers. #real estate #housingmarket #narsettlement #atl #Atlanta
The changes won’t be that big.maybe they will be good
While there was a fair amount of gnashing of teeth, not everyone was completely dismayed by the settlement. Instead, some agents actually believe that, despite the alarmist headlines, not much will actually change when the dust settles. Others, meanwhile, argue that, ultimately, the change may actually be positive because, among other reasons, it may prompt agents to better express their own values.
Crystal Bachman, Wellington, FL: “It will be the same structure, it will be exactly the same, but the feathers will be ruffled.”
@business.and.boujee
Chloe Powell, Loudoun County, Virginia: “There will no longer be agent compensation in Major League Soccer. So what does that mean? Well, sellers get ready because buyers are going to demand it in the form of seller concessions or seller subsidies because buyer’s agents are still Exists. And, we will have another way to share agent compensation, but it won’t be MLS.”
@thechloepowell Calm down. Stay calm.Change is a good thing #nar #Real estate broker #real estate
Anne Stewart, Portland, Oregon: “Change sucks, I get it. But one thing about real estate is that it’s constantly changing. Constantly changing. It’s going to be the best. I promise.”
@realestatewithanne Reply to @Katherine Mancino I know the news released today is very disturbing to many real estate agents. But change is inevitable and has been happening for some time, and we need to adapt and move forward so we can help our customers. #NAR #NARlawsuit #RealEstateAgentsOfTikTok #real estate agent tips
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